Oil Stays Flat as Traders Weigh OPEC Cuts, Higher US Output

Oil prices are trading relatively flat on Thursday as traders are weighing cuts by Organization of Petroleum Exporting Countries (OPEC) members and a sharp increase in US crude and gasoline stockpiles. After a two-session climb, oil futures may be retreating near the end of the trading week.

March West Texas Intermediate (WTI) crude futures tumbled $0.09, or 0.17%, to $53.79 per barrel at 16:25 GMT on Thursday on the New York Mercantile Exchange. US crude is poised to settle at its highest level since January 6.

Brent, the international benchmark for oil prices, is trading in the opposite direction. April Brent crude futures rose $0.09, or 0.16%, to $56.89 a barrel on London’s ICE Futures exchange.

US and Brent crude are not making any considerable moves because traders are assessing the current situation in the international oil market. Although OPEC and non-OPEC members are moving ahead with the arrangement to slash oil production levels, US producers are ramping up their output efforts. This was something that many had warned about soon after OPEC agreed to cap their production numbers.

This has been the trend in the US for the past year. American inventories have been hovering around record highs as US companies drilling for shale oil are trying to take advantage of higher oil prices.